Myanmar conglomerate Zay Kabar Company and Chinese developer Zhejiang Luding Investment Co have signed an agreement to jointly develop a bazaar in Mingaladon township.
Designs for the project, which will involve the development of a wholesale and retail market, residential units and office buildings across 124 acres of land, have been submitted to the Yangon City Development Committee (YCDC) and Myanmar Investment Commission (MIC) for the necessary approvals.
Construction is expected to begin after the MIC approves a grant for the project. Both companies have committed a total of $700 million to develop the project.
The idea to develop the bazaar came about after the Ministry of Construction approved the construction of a 40.5 kilometer highway linking Strand Road in downtown Yangon to the Yangon-Mandalay highway.
One of the advantages of the highway is that it will reduce traveling time between downtown Yangon and Yangon International Airport, which is in Mingaladon, to just 20 minutes during peak hour traffic.
Soon, Yangon residents can also make use of the highway to visit the Mingaladon Bazaar, which “will be a one-stop shopping bazaar in Mingaladon,” said U Khin Shwe, chair of Zay Kabar Company.
“The Mingaladon Bazaar will provide consumers with an option to buy everything they need in one area as traffic congestion and space constraints in the downtown area sometimes prevent them from doing so.”
Zay Kabar will work with the China’s Zhejiang Luding Investment Co, which is expected to provide the financing and technological know-how, to develop the project.
“In Myanmar, borrowing rates are as high as 13 percent but in China, the rate is just 1pc-3pc. As such, we need to partner with a Chinese company which is willing to invest the needed capital into the project,” said U Khin Shwe.
Besides the Mingaladon Bazaar, Zay Kabar was also developing a real estate project near the Mya Yeik Nyo Royal Hotel, which it also owns, at Bahan township.
The real estate project, which is expected to include twelve 24-storey buildings, received approval last June. However, the project suspended by the Yangon City Development Committee since March 14 due to its proximity to Kokkine reservoir.
Potential damage to Kokkine could result in water shortages to nine townships in Yangon, including Bahan, Dagon, Kamayut, Mayangone, Tamwe, Sanchaung, Ahlone, Kyeemyindaing, and Mingalar Taung Nyunt. These include townships in which Shwedagon Pagoda and Yangon General Hospital are located.
Source : Myanmar Times
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